Exelixis stock rating reiterated by JMP analyst despite sales miss

Published 29/07/2025, 10:48
Exelixis stock rating reiterated by JMP analyst despite sales miss

Investing.com - JMP Securities has reiterated its Market Outperform rating and $50.00 price target on Exelixis (NASDAQ:EXEL), which has delivered an impressive 92% return over the past year and maintains a perfect Piotroski Score of 9 according to InvestingPro, despite the company missing slightly on net cabozantinib sales.

The research firm attributed the miss to new pricing dynamics while highlighting that volume growth remains solid at 18% year-over-year. JMP believes cabozantinib is on track to reach fiscal year 2025 sales of $2.1 billion, with the $3 billion long-term guidance providing significant room for growth. This aligns with the company’s strong revenue growth of 24.5% and impressive 96.8% gross profit margin. InvestingPro analysis suggests the stock is currently undervalued relative to its Fair Value.

Market attention has also focused on Exelixis’s zanzalintinib drug and the upcoming STELLAR-303 colorectal cancer data presentation at a future medical meeting, which will address the competitiveness of the IO+TKI combination therapy, including questions on utility in patient subgroups.

JMP Securities noted that Exelixis’s interest in development for the post-adjuvant setting could provide a significant opportunity for the company’s growth pipeline.

While the discontinuation of zanzalintinib development for head and neck cancer was described as unfortunate, the research firm viewed it as evidence of research and development discipline, stating that this decision does not affect their financial model for the company.

In other recent news, Exelixis Inc . reported its second-quarter 2025 earnings, revealing a strong performance with earnings per share (EPS) of $0.75. This figure exceeded analysts’ expectations, which were set at $0.64. However, the company’s revenue for the quarter was $568 million, falling short of the anticipated $578.46 million. Despite this slight revenue miss, the positive earnings result has been well-received by investors. These developments highlight Exelixis’s strategic advancements and financial health. No major mergers or acquisitions were reported. Additionally, there were no significant analyst upgrades or downgrades noted in the recent period. The company’s performance continues to draw attention from the investment community.

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